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The Inevitable Economic Collapse

In: Business and Management

Submitted By HolyFire3
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The Inevitable Economic Collapse

Prelude
“All truth passes through three stages.
First, it is ridiculed.
Second, it is violently opposed.
Third, it is accepted as being self-evident.”
– Arthur Schopenhauer Unless you have been living in a cave or been in a coma the last five years, it should be blatantly obvious (even to the casual observer) that the U.S. Economy is near implosion. The meltdown of 2008 was child’s play compared to what is lurking on the horizon. While the government artificially stimulates the economy by printing new money and propping up the stock market to make things appear rosy, economists are sounding the alarm to get ready for the biggest economic collapse in the history of America. It is not about pessimism or optimism, it is about the facts. The truth is that America is bankrupt at every level and no amount of bailouts, stimulus packages, budget cuts, or tax increases will get us out of the debt hell we have created. So, what is really going on with our economy and how did we get in this mess? What options do we have? What are the consequences of those options?
Economics 101: Deficit vs. National Debt

Deficit is basically the shortcomings in the budget for any given year. If the government has $300 billion in available funds and it spends $350 billion, it has a deficit of $50 billion. At the end of that year, what happens to the $50 billion owed? It gets rolled over into the long-term shortcoming, which is the national debt. The latter debt is ideally to be paid by using revenue from corporate and income taxes plus other fees imposed by the government. The U.S. national debt then, is the sum of all outstanding debt owed by the federal government. It includes the money government borrowed, plus the interest it must pay on this debt.

Putting Deficit and…...

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